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TheStreet Open House

Don't Answer BlackBerry's Call; Nobody Else Is

NEW YORK ( TheStreet) -- I recently wrote an article about why I thought BlackBerry's (BBRY) management was a joke, bound to fail and making a huge mistake. While management might be making the right move, it's for the wrong reasons, or at least the ones provided.

Thorsten Heins, the CEO of BlackBerry, said, "In five years I don't think there'll be a reason to have a tablet anymore."

Wow. That's a pretty brash statement to make, especially for a company clearly failing in that segment of mobile devices. I could see if Heins said that and BlackBerry didn't have its Playbook tablet.

But the fact that it does and can't seem to convince consumers it's any good, speaks volumes for the real reason, which is that the company can't keep pace with Apple (AAPL) or Google (GOOG).

Therefore, since the company has all but failed in the explosive tablet market, investors expect that it will pursue what Heins is supposedly focusing on: the smartphone market.

While globally BlackBerry is a rather iconic brand, the dominance no longer remains to be seen in the United States. Assuming the real reason the company is giving up on tablets for the time being is because it can't keep pace with competitors, it's not like smartphones offer much of a hiding place.

iOS and Android devices continue to reign control over the entire mobile market, whether it's smartphones or tablets. That's not going to change anytime soon, at least, according to a study by Gartner. BlackBerry's operating system is expected to decrease from 34.7 million units in 2012 to 24.1 million units in 2017. A decrease of 10.6 million units, or about one-third of current levels, certainly is not good for the Canadian-based company.

Furthermore, the report from Gartner calls for Apple's iOS operating system to climb from 346.5 million devices to 570.9 million, an increase of nearly 65% from current levels. Android estimates are even more impressive, which calls for an increase from 497.1 million units in 2012 to 1.47 billion units in 2017.

So in a world surrounded by mobile growth, BlackBerry is actually expected to decline, while the market juggernauts continue to eat everyone else's lunch.

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